EU fines AliExpress record €550M for illegal goods; China opposes

The European Commission issued a €550 million ($629 million) fine to AliExpress on July 20, 2026, for systemic failures to prevent illegal, unsafe, and counterfeit products from being sold on its platform. The penalty is the largest ever imposed under the EU's Digital Services Act, which mandates that large platforms protect consumers from harmful goods and deceptive practices.

Investigators found that AliExpress allocated insufficient staff to monitor products—sometimes giving content moderators just "tens of seconds" to evaluate whether flagged items met EU safety standards. The platform failed to remove millions of unsafe toys, dangerous cosmetics, and counterfeit clothing, with some items remaining online for multiple weeks after detection. The commission also determined that AliExpress inadequately assessed its recommendation and advertising systems, which actively promoted illegal products rather than restricting their spread. Sellers could easily evade safety checks by miscategorizing items, and the platform's mandatory brand authorization system was ineffective and understaffed.

AliExpress disputed the fine, calling it "disproportionate" and stating it would appeal the decision. The company asserted that it had invested "substantial resources" in risk assessment, product safety, and consumer protection. Under the commission's order, AliExpress must submit an action plan by October 20, 2026, outlining measures to remedy its breaches.

China's Ministry of Commerce responded on July 22 with strong opposition, accusing the EU of erecting "digital barriers" under the guise of platform regulation and adopting discriminatory measures against Chinese e-commerce firms. The ministry urged the EU to stop abusing legal discretion and treat Chinese companies fairly, while pledging to support Chinese firms in using legal means to defend their rights. The China Chamber of Commerce to the European Union similarly expressed concerns, calling for a fair, transparent, and non-discriminatory digital market framework.

The fine reflects broader EU regulatory tightening on Chinese e-commerce platforms. Temu was fined €200 million in May 2026 for similar Digital Services Act violations. EU testing of major platforms including Shein found that 65 percent of cosmetics, 63 percent of food supplements, and 60 percent of personal protection equipment were non-compliant with safety standards.